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Russia Proposes Currency Devaluation

The Russian Finance Ministry has reportedly proposed devaluing the ruble by as much as 10% in order to bolster government finances.

With oil prices hovering around $55, the Russian state is still running a budget deficit. A relatively stronger dollar would increase the ruble intake from Russia vast oil reserves.

At current exchange rates of nearly 60 rubles to the dollar, global oil prices would need to reach approximately $76 dollars.

The Ministry of Finance and Russia’s Central Bank have both denied the claims made in the Russian media.

Oil prices began to fall steeply in June 2014, when the cost of a barrel halved over the course of six months. The price of Brent crude oil eventually dropped to $35 a barrel in January 2016, before beginning to rise again in 2016.